http://www.iomart.com/

The Group's principal activity is providing web based managed hosting services for both the consumer and business.

Originally founded in 1998 as an integrated internet and telecommunications company, the Group has evolved to become one of Europe’s largest providers of managed hosting, colocation, data centre, and business continuity services, serving over 300, 000 customers each day. Having been at the forefront of the UK’s technological revolution for the past decade the Group has developed an enviable reputation for its internet expertise, its service ethic and its product innovation.

The Group holds a unique position within the marketplace. By owning its own data centre and network infrastructure, it is able to deliver the complete set of vertical components in the hosting arena from domain names, virtual web space, security, web marketing, SEO, websites, dedicated servers through to complex managed hosting solutions, colocation space, power, cooling and bandwidth.

As more and more mission critical business applications move on to the web, so organisations need more resilience, security and 24 hour management; the market for managed hosting services and datacentre capacity is expected to grow significantly over the next few years.Described by US Analyst Tier 1 as "currently enjoying the sort of momentum that could soon place it on the list of European heavyweights.", the iomart Group is fast proving to be one of the UK's leading lights in the provision of true cloud computing services.

Iomart: Canaccord Genuity ups target price from 272p to 300p and maintains a buy recommendation.

Yesterdays news just being digested. This share always takes a couple of days to react to good news.

Posted on September 9, 2013


UK Cloud Company Invests in Massive Onsite Storage Capability

vmax_storage


iomart Group plc (AIM:IOM), has become one of the first cloud hosting companies in the world to install EMC® VMAX ® Cloud Edition platform, a self-service, enterprise-class as-a-service, cloud delivery platform, onsite in its data centre, giving its customers direct access to the world’s most comprehensive range of powerful, trusted and smart storage.

With the VMAX Cloud Edition solution, iomart is able to move away from a traditional model of shared storage and offer a range of pre-engineered service levels to satisfy a wide range of workloads. With automatic service delivery features on-demand, clients benefit from enterprise-class storage and the flexibility to provide the right result needed for their applications.

VMAX Cloud Edition leverages capabilities found in the EMC® VMAX® array, which is trusted by Fortune 50 companies and many of the world’s largest banks.

Angus MacSween, CEO of iomart Group plc, said: “We invested in VMAX Cloud Edition because we believe it’s important that our customers can manage their storage needs according to their requirements rather than us dictating what they can have. Not only does this put our storage capabilities on a par with some of the world’s biggest corporations, it gives our customers the ability to manage and move their workloads in any way they want through structured pricing bands.”

Matthew Yeager, Director of Software Engineering EMEA for EMC, commented: “We are delighted that iomart, already identified as a progressive and innovative partner through our Velocity™ Service Provider programme, has decided to extend its leading-edge customer centric services with VMAX Cloud Edition. Collectively we are most successful when we work with partners like iomart who have a clear idea of the services they wish to offer their customers.”

A video explaining what EMC VMAX Cloud Edition storage means for iomart’s customers can be viewed here

Digital Marketing Event Organiser ad:tech Moves to the iomart Cloud

Posted on September 10, 2013


iomart Provides Secure and Scalable UK cloud hosting

iomar_ad_tech_cloud_hosting

Glasgow, UK: ad:tech, the organiser of the world’s largest digital marketing conferences, has chosen CloudSure from iomart Hosting, a leading UK provider of bespoke cloud and managed hosting, to ensure a scalable and highly available web presence ahead of its annual London event.

Every year ad:tech stages ten global advertising and technology conferences and exhibitions which provide a forum for digital marketing trends and initiatives and are attended by thousands of digital professionals. ad:tech London takes place on September 11 – 12 at Olympia.

The company behind ad:tech, dmg::events, were hosting on a physical infrastructure with a web hosting company in the south of France but decided they needed more secure and flexible hosting in the UK. The Cloud gives them the ability to cope with peaks of interest around each of their events.

They now have a fully managed Cloud solution including, Server, Backup, Storage and Firewall on iomart Hosting’s high availability CloudSure platform.

James Drake Brockman, Head of EMEA, Digital Marketing for dmg::events, said: “When I took responsibility for ad:tech at the start of 2013 I ordered an audit of the technology we were using. As a UK based organisation I felt we should be hosting here. It was a quick and natural decision to go with the UK’s leading provider of cloud services and benefit from more flexible provisioning.”

Sarah Haran, Managing Director of iomart hosting, said: “We’re delighted to be providing cloud hosting for the leading organiser of digital marketing events around the world. CloudSure gives ad:tech the ability to cope quickly and efficiently with spikey traffic around the conferences and exhibitions it stages.”

Nice and steady, market digested the news.

RapidSwitch Provides Secure Cloud Hosting for Documents Online

Posted on September 16, 2013


Electronic Document Management Company Chooses Secure Private Cloud

shutterstock_111009062

iomart Group dedicated hosting brand RapidSwitch, has been selected by Documents Online to host its new affordable electronic document management (EDM) software in a secure, private cloud.

Documents Online, which is part of information management specialists IPC Group and based in St Ives, Cambridgeshire, has launched a new package of cloud-based EDM software which uses icons rather than the traditional ‘tree structure’ that most systems use. The company’s customers range from payroll specialists to intellectual property consultants so it needed a reliable and secure environment in which to host the new software.

Graham Light, Director of Documents Online, said: “Customers trust us to store thousands of important documents such as contracts, invoices and purchase orders. Having our new software securely hosted on a private cloud in RapidSwitch’s UK data centre means those customers can relax, knowing that we control and support the software for them twenty four hours a day.”

Documents Online carries out all work remotely via the web from initial demonstrations to system specification and set up, right through to training. Its key requirements from RapidSwitch were sophisticated monitoring, KVM over IP availability, dedicated network firewall and security features, an easy-to-use control panel and 24/7 support.

Neil Christie, Commercial Director of RapidSwitch, said: “We were able to deploy a ready-to-run high availability private cloud environment for Documents Online so they could meet the strict security regulations surrounding their customer’s requirements while at the same time allowing round-the-clock access to their data.”

RapidSwitch hosts thousands of servers for a wide range of clients at its data centre in Maidenhead, Berkshire. It has a reputation for excellence in customer service with technical support provided 24/7/365. Clients include streaming service providers, gaming companies, voice over IPs (VOIP) and global media broadcasters.

Good to see no great sell off today, as Shares suggests take profits but keep half of your original stake to maintain exposure. Not selling mine.

Five growing UK software companies

By Jessica Furseth | Fri, 20th September 2013 - 17:11


Iomart

Cloud computing specialist Iomart (IOM) has seen its shares climb steadily in 2013, supported by an upbeat outlook at May's full-year results. "We continue to be well placed to deliver an ever-wider range of cloud services and with our growing credibility and strength we expect to be able to penetrate further into the corporate environment," said CEO Angus MacSween.

Revenues grew 29% to £43 million, while adjusted pre-tax profits grew 56% to £10.7 million.

Iomart, which provides hosting and managed services, aims to add further acquisitions to an already active shopping schedule, as the Glasgow company positions itself to take advantage of the data boom.





http://www.iii.co.uk/articles/116866/five-growing-uk-software-companies

iomart subsidiary RapidSwitch establishes Points of Presence in the United States

Posted on September 23, 2013


iomart Group’s dedicated server brand expands network to North America

RapidSwitch US PoPs- map








RapidSwitch, the leading European supplier of self-managed dedicated server solutions and part of UK cloud company iomart Group plc, has extended its network into the United States.

RapidSwitch has established Points of Presence (PoPs) in Atlanta, Phoenix, Boston, Los Angeles, Dallas, New Jersey and Chicago, creating a transatlantic network connection for UK customers who require multi-geographic platforms across the globe.

Covering the East and West coasts of the US is of paramount importance for delivering low-latency bandwidth to customers across the whole of the country, which is a far greater challenge than in the UK due to the sheer size difference between the two regions.

Neil Christie, Commercial Director of RapidSwitch, said: “We are now offering a secure inter-linked network connection, primarily for UK customers who want to deliver secure, global platforms without the worry of building relationships with multiple providers in different time zones.”

RapidSwitch hosts thousands of servers for a wide range of clients and has a reputation for excellence in customer service with technical support provided 24x7x365.

RapidSwitch is part of iomart Group plc which has one of the largest and fastest networks in the UK serving clients include streaming service providers, gaming companies, voice over IPs (VOIP) and global media broadcasters. This national MPLS-enabled network enables private circuits to be provided to customers not only between the datacentre sites but directly to their own locations.

Acquisition, Trading Update and Notice of Results

RNS


RNS Number : 3418P

Iomart Group PLC

01 October 2013




1st October 2013

iomart Group plc

("iomart" or the "Group" or the "Company")



Acquisition, Trading Update and Notice of Results



iomart, the cloud computing company, is pleased to announce the acquisition of the entire issued share capital of Backup Technology Holdings Limited and its wholly owned subsidiary ("BTL"), a leading provider of cloud data backup and disaster recovery services. The Company also provides an update on trading ahead of the announcement of half yearly results for the six months to 30 September 2013.



Acquisition of Backup Technology

The total consideration paid for BTL is £23m, satisfied through an initial consideration of £17.5m in cash and £3.5m from the issue of 1,205,857 new ordinary shares. A further deferred consideration of £2.0m is payable in cash on 31 January 2014.



Based in Leeds, BTL boasts an impressive customer portfolio of 200 enterprise clients including Siemens, British Red Cross, Lloyds Register, Suzuki and Pernod Ricard as well as Liverpool and Everton football clubs. Established in 2005 BTL now protects many Petabytes of data for clients. BTL has been a leader in cloud backup up since it was founded and has established a solid, well regarded, growing business providing an increasingly important element of a business's IT infrastructure.



For the twelve months ended 31 December 2012, BTL delivered turnover of £5.2m with an EBITDA1 of £2.4m and net assets of £2.3m. The cash consideration will be financed out of new banking facilities and the acquisition is expected to be immediately earnings enhancing before acquisition costs and normal acquisition adjustments including any fair value adjustments and the amortisation of intangible assets.



Current Trading

Trading in the first half of the year remains strong, with revenue and profits substantially ahead of the comparative period last year and in line with current consensus market expectations.



The Group continues to successfully execute on its focussed growth strategy of providing high quality and high margin managed solutions to corporate customers. With an expanding range of cloud services, through both organic and acquisitive means, iomart continues to build its reputation as the UK's leading cloud computing company.



Today's acquisition of BTL follows the acquisition earlier this month of dedicated server provider, Redstation, and the early integration of that business is progressing as planned.



Customer demand for iomart's services remains strong and growing, as the market increasingly shifts toward the provision of products and services over the internet. Strong market drivers, combined with high levels of visibility and customer renewals, leaves the Board optimistic for continued success.



Angus MacSween, Chief Executive of iomart, stated: "We are pleased with the continuing strong performance of iomart. The addition of BTL to the Group will further broaden and diversify our cloud-based offerings and enhance our position in the market. I look forward to the second half of the year and remain very confident in the growth prospects of the business."



Banking Facility



The cash consideration for the acquisition of BTL has been financed by a £35m debt package from Bank of Scotland made up of a £15m Term Loan and a £20m Revolving Credit Facility. Of the total facilities of £35m the company has drawn down £32.5m. £14m of this has been used to repay existing bank facilities and the balance has been used to finance the acquisition.



The Board believes the willingness of Bank of Scotland to provide the debt further underlines the Group's strong attractiveness to lenders.



The net debt position of the Company following this transaction will be approximately £26m. The Board anticipates that the cash generative nature of the existing business which will be further enhanced by this acquisition will enable all debt service metrics to be met and allow the Group to repay debt going forwards as it falls due.



Additional Listing



Application has been made to the London Stock Exchange for the new ordinary shares, which will rank pari passu with the existing shares in issue, to be admitted to trading on AIM, and admission is expected to become effective on 4 October 2013. The Company's total issued share capital after the admission of the new ordinary shares will be 107,786,339 ordinary shares. There are 140,773 ordinary shares in the iomart Group plc Employee Benefit Trust and the Company holds 1,023,453 of its ordinary shares in treasury. Therefore the total number of ordinary shares with voting rights in the Company is 106,622,113. This figure of 106,622,113 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.



Notice of results



The Group expects to report half yearly results for the six months ending 30 September 2013 on 10th December 2013.

Iomart: Canaccord Genuity downgrades from buy to hold with an unchanged target price of 300p.

1 Oct Finncap 320.00 Buy


1 Oct N+1 Singer N/A Buy

Shares today -

Three is magic number for Iomart


Typical, Iomart (IOM:AIM) says virtually nothing for months, then along come three announcements at once. But analogies to buses are not really fair, this company is more sleek, chauffeur-driven Bentley that puttering public transport. As today’s trading update spells out, business is typically brisk and moving forward, built on that compelling and growing IT hosting and services outsourcing theme.

Today’s £23 million acquisition of Backup Technology Holdings (BTL) plays the same tune, bringing blue-chips client such as Siemens, the British Red Cross, Lloyds, Suzuki, even Liverpool and Everton football clubs, both currently flying high in the Premier League.

Last year to December, BTL achieved £5.2 million of revenue and £2.4 million earnings before interest, tax, depreciation and amortisation (EBITDA) for a 46% margin, matching last month’s Redstation deal.

Today’s take-out price is substantially higher, pitched at 9.6-times trailing EBITDA compared to the 3.4-times EBITDA of Redstation and typical four to six-times ratings of past acquisitions.

If BTL’s 200-odd clients can help prop-up Iomart’s own sprialing 38% measure EBITDA margins, reported last year to March, perhaps the price will prove a moot point.

The third interesting development centres around Iomart management’s plans to flog £11.8 million worth of stock via a book build placing. This is arguably the biggest factor in the shares near 3% slip today to 282p. But chief executive and founder Angus MacSween, who alone is selling £10 million worth, has not been a regular seller despite the shares incredible 10-fold four-year run from 28p.

IOMART GROUP - Comparison Line Chart (Rebased to first)

He says he wants to ‘rebalance his portfolio and utilise his entrepreneurs’ relief.’ That seems quite reasonable as any business builder must at some stage get the chance to crystalise their hard graft. He’s only selling about a fifth of his overall stake, as well as promising not to do it again… well, not until at least after full year results for 2015.

iomart Offers Greater Range of Cloud Services To UK Government G-Cloud 4

Posted on October 29, 2013


Adds Private and Hybrid Cloud plus Data Centre and Colocation Services to CloudStore

iomart Group plc (AIM:IOM), will be offering an expanded range of cloud and colocation hosting services to the UK public sector after being selected for G-Cloud 4, the fourth iteration of the pre-approved group of Cloud ICT suppliers to the UK Government.

iomart has added its expertise in the bespoke provisioning of private and hybrid cloud solutions to the CloudStore catalogue as well as offering data centre and colocation services. The new services can be found under the sections for Infrastructure As A Service (IaaS); Platform As A Service (PaaS); and Software As A Service (SaaS) for which iomart was accredited earlier this year when it was selected for G Cloud iii.

Angus MacSween, CEO of iomart Group plc, said: “As cloud becomes the de facto delivery mechanism for IT services, we are finding that public sector organisations are being much more specific about the type of cloud hosting services they are seeking from the G Cloud catalogue. We have expanded our range to reflect the significant expertise we have in these areas.

“In addition, we have also been accredited for data centre and colocation services, ensuring that we can offer prospective public sector clients the opportunity to utilise our nationwide estate of eight data centre locations and pan UK fibre network. This is particularly important as more and more Government organisations are seeking IT outsourcing disaster recovery and off-site storage solutions with trusted suppliers.”

iomart’s existing public sector clients include one of the UK’s biggest housing associations as well as a range of councils and education providers.

iomart specialises in the delivery and management of bespoke mission-critical private and hybrid cloud and managed IT infrastructures as well as providing cloud services such as storage, backup and security solutions.

iomartcloud partners Exinda to Protect Enterprises and Schools from Growing Cybersecurity Threats

Posted on November 27, 2013


Web Content Filter and Malware Protection Provides Safe Online Environment

iomartcloud, a leading supplier of business critical hosted cloud services and part of iomart Group plc, has partnered with Exinda, a global provider of next-generation WAN Optimization and Network Control solutions, to deliver an innovative web filtering solution to enterprise networks and primary and secondary schools.

As a result of increased online collaboration and mobile device expansion in the workplace, the risk of employees and students accessing inappropriate content on the network is growing. In response Exinda has launched the Exinda Content Filter which integrates the content filtering capabilities from iomartcloud into its WAN Optimization and Network Control appliances which have helped over 3,000 organizations worldwide deliver safe and reliable end user experiences.

Bill Strain, director of iomartcloud, said: “This is a very important partnership with a global leader in WAN Optimization and Network Control. It means our web filtering software will be delivered through a single network appliance for the first time. Businesses and organizations across the globe will be able to add web filtering to their network quickly and affordably at any level, from the gateway right down to the individual device, according to their requirements.”

The cloud-based Exinda Content Filter will provide IT managers with the ability to block access to prohibited content, prevent staff and students from downloading and sharing copyrighted material, and eliminate misuse of the network. With its best in class reporting tools, Exinda Content filter enables IT staff to monitor users and applications on or off the network, and set intelligent policies that restrict unauthorised behaviour.

iomartcloud works with a number of US and global service providers to deliver business-critical cloud solutions. Earlier this year SHI International Corp., one of America’s top 20 IT solutions providers, chose iomartcloud’s enterprise cloud platform to deliver reliable and flexible backup solutions for its customers.

iomartcloud’s Web Filter product is accredited for Child Safety Online by the British Standards Institute.

QA Software Saves Money with Powerful Hosting from iomart

Posted on November 28, 2013


AEC, Utilities and Oil & Gas SaaS Provider Saves £30,000
iomart Hosting, one of Europe’s leading providers of complex cloud and managed hosting services to the enterprise market and part of iomart Group, has helped QA Software, a leading global Software as a Service provider, to save at least £30,000 by migrating it to an improved and more powerful hosting platform.

QA Software develops information management solutions for the Architectural, Engineering and Construction (AEC), Utilities and Oil & Gas industries.

The successful and growing company needed a fully upgraded and more powerful solution combining speed of application and SQL data base, resilience and capacity, with disaster recovery. QA Software went to market and picked iomart for the mix of managed and colocation services it needed.

Brian Dodsworth, Managing Director of QA Software, said: “iomart was the obvious choice for us. The flexible service level agreement meant we could use the service efficiently and it has resulted in a significant cost saving. We believe we will have saved in excess of £30,000 by switching our hosting to iomart over the initial three years of our contract.”

Paul Stuart, Head of IT for QA Software, added: “With the assistance of iomart’s technical team we were able to design and implement a solution that met all of our requirements. The transition to iomart was very smooth. We experienced no downtime or problems during implementation.”

Sarah Haran, managing director of iomart Hosting, said: “QA Software needed a secure and reliable hosting platform incorporating disaster recovery because of the mission critical nature of the work they do for their clients. Our migration team worked with them to complete the upgrade and the move to our London data centre in four weeks without any downtime.”

iomart Group: N+1 Singer downgrades from buy to hold, while raising its target price to 282p.

iomartcloud Secures £100,000 Contract with Government Digital Service

Posted on December 5, 2013


iomart Wins First G-Cloud Contract

iomartcloud, iomart Group’s business critical hosted cloud services brand, has won a £100,000 year-long contract from the Government Digital Service (GDS) to provide cloud services for the GOV.UK government services web portal.

iomartcloud, in partnership with traditional IT supplier Viglen, was given the contract following an award placed under the government’s G-Cloud framework.

iomartcloud will be providing virtual machines, EMC VMAX storage and backup which GDS will be able to manage via VMware vCloud Director, which allows elastic compute provision while maintaining security and control.

Angus MacSween, CEO of iomart Group plc, said: “I am delighted that iomartcloud has been selected as one of the main suppliers for GOV.UK. This is our first major contract win under the G Cloud framework and underlines our ability to provide the scalable and flexible infrastructure to support the most complex public sector projects. It also shows that G-Cloud is opening up the opportunity for a wider group of cloud services providers to successfully compete for government contracts.”

Michael Ruddick, Head of Channel EMEA for iomartcloud, added: “The contract with the Government Digital Service also underlines the shift that’s taking place towards cloud service providers working to provide more efficient and cost-effective solutions to the public as well as the private sector.”

GOV.UK is the single domain for government services that went live in October 2012. It averages over nine million weekly visits. The website won the prestigious “Design of the Year” award this year and was described by Prime Minister David Cameron as an example of “world class design talent” which enhanced “the modern relationship between the public and government.”

The G-Cloud Framework makes it easier for government departments and the wider public sector to buy cloud based services from a list of suppliers including SMEs through an online marketplace called Cloudstore. All of the products and companies are listed side by side creating a level playing field and opening up more opportunities for suppliers to compete on like-for-like terms.

iomartcloud and Viglen have joint presence on the G-Cloud 4 Framework and offer a wide range of cloud based services for Infrastructure as a Service (IaaS); Platform as a Service (PaaS); and Software as a Service (SaaS).

Interims Tues 10 Dec

RNS


RNS Number : 0991V

Iomart Group PLC

10 December 2013








10 December 2013

iomart Group plc

("iomart" or the "Group" or the "Company")

Half Yearly Results



iomart (AIM:IOM), the cloud computing company, is pleased to report its consolidated half yearly results for the period ended 30 September 2013.



FINANCIAL HIGHLIGHTS



· Revenue growth of 23% to £24.6m (H1 2013: £19.9m)

· Adjusted EBITDA1 growth of 29% to £9.8m (H1 2013: £7.6m)

· Adjusted profit before tax2 growth of 29% to £6.3m (H1 2013: £4.9m)

· Adjusted basic earnings per share3 from operations increased by 35% to 4.89p (H1 2013: 3.61p)

· Cashflow from operations increased by 43% to £9.1m (H1 2013: £6.4m)

· Adjusted EBITDA1 margins increased to 40% (H1 2013: 38%)

OPERATIONAL HIGHLIGHTS



· Increased European footprint and dedicated server expertise through the acquisition of Redstation Limited for a maximum consideration of £8.1m

· Acquired major presence in the Cloud backup and disaster recovery market through the acquisition of Backup Technology Holdings Limited for a total consideration of £23.0m

· Continued progress on the fit out of additional 600 racks of datacentre space in Maidenhead



Statutory Equivalents



The above highlights are based on adjusted results. A full reconciliation between adjusted and statutory results is contained within this statement. The statutory equivalents of the above results are as follows:



· Profit before tax growth of 6% to £4.4m (H1 2013: £4.1m)

· Basic earnings per share from operations increased by 12% to 3.39p (H1 2013: 3.03p)



Angus MacSween, CEO commented,



"Trading in the second half of the year has begun well and we continue to win business from new and existing customers. We remain confident of achieving another successful year of significant growth in line with the upgraded market expectations.



"We also continue to invest in our people and infrastructure as we evolve and grow. This will ensure we are well positioned to take advantage of the still largely untapped corporate cloud market, and further fuel the growth we have enjoyed in recent years.



"With increased capacity, geographical presence and additional expertise in high growth cloud services we look forward with confidence."





1 Throughout this statement adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA) before share based payment charges and acquisition costs. Throughout this statement acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs.

2 Throughout this statement adjusted profit before tax is profit before tax, amortisation charges on acquired intangible assets, share based payment charges, mark to mark adjustments in respect of interest rate swaps, the accelerated write off of arrangement fees on the bank borrowing facility which was repaid early in the period and acquisition costs.

3 Throughout this statement adjusted earnings per share is earnings per share before amortisation charges on acquired intangible

assets, share based payment charges, mark to market adjustments in respect of interest rate swaps, the accelerated write off of arrangement fees on the bank borrowing facility which was repaid early in the period and acquisition costs, including the taxation effect of these.

RNS


RNS Number : 0991V

Iomart Group PLC

10 December 2013








10 December 2013

iomart Group plc

("iomart" or the "Group" or the "Company")

Half Yearly Results



iomart (AIM:IOM), the cloud computing company, is pleased to report its consolidated half yearly results for the period ended 30 September 2013.



FINANCIAL HIGHLIGHTS



· Revenue growth of 23% to £24.6m (H1 2013: £19.9m)

· Adjusted EBITDA1 growth of 29% to £9.8m (H1 2013: £7.6m)

· Adjusted profit before tax2 growth of 29% to £6.3m (H1 2013: £4.9m)

· Adjusted basic earnings per share3 from operations increased by 35% to 4.89p (H1 2013: 3.61p)

· Cashflow from operations increased by 43% to £9.1m (H1 2013: £6.4m)

· Adjusted EBITDA1 margins increased to 40% (H1 2013: 38%)

OPERATIONAL HIGHLIGHTS



· Increased European footprint and dedicated server expertise through the acquisition of Redstation Limited for a maximum consideration of £8.1m

· Acquired major presence in the Cloud backup and disaster recovery market through the acquisition of Backup Technology Holdings Limited for a total consideration of £23.0m

· Continued progress on the fit out of additional 600 racks of datacentre space in Maidenhead



Statutory Equivalents



The above highlights are based on adjusted results. A full reconciliation between adjusted and statutory results is contained within this statement. The statutory equivalents of the above results are as follows:



· Profit before tax growth of 6% to £4.4m (H1 2013: £4.1m)

· Basic earnings per share from operations increased by 12% to 3.39p (H1 2013: 3.03p)



Angus MacSween, CEO commented,



"Trading in the second half of the year has begun well and we continue to win business from new and existing customers. We remain confident of achieving another successful year of significant growth in line with the upgraded market expectations.



"We also continue to invest in our people and infrastructure as we evolve and grow. This will ensure we are well positioned to take advantage of the still largely untapped corporate cloud market, and further fuel the growth we have enjoyed in recent years.



"With increased capacity, geographical presence and additional expertise in high growth cloud services we look forward with confidence."





1 Throughout this statement adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA) before share based payment charges and acquisition costs. Throughout this statement acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs.

2 Throughout this statement adjusted profit before tax is profit before tax, amortisation charges on acquired intangible assets, share based payment charges, mark to mark adjustments in respect of interest rate swaps, the accelerated write off of arrangement fees on the bank borrowing facility which was repaid early in the period and acquisition costs.

3 Throughout this statement adjusted earnings per share is earnings per share before amortisation charges on acquired intangible

assets, share based payment charges, mark to market adjustments in respect of interest rate swaps, the accelerated write off of arrangement fees on the bank borrowing facility which was repaid early in the period and acquisition costs, including the taxation effect of these.